United States Senator Ted Cruz wants to make the American state of Texas an oasis for Bitcoin  and cryptocurrencies. Speaking at the Texas Blockchain Summit 2022 in late November, the politician empathized how the crypto industry can be strategic for the U.S. energy supply and technological development. 

 

Cruz argued that Bitcoin mining could be used to monetize energy created from oil and gas extraction, rather than burning it. In addition, he emphasized how mining activity can be used as an energy storage and supply alternative:

"The beauty of it [Bitcoin mining] is when you've got substantial investment, as we do in Texas and Bitcoin mining, when you have an extreme weather event, either extreme heat, which is frequent in the state of Texas or extreme cold, which sometimes happens here, Bitcoin mining can be shut off in a fraction of a second. Making that electricity immediately available to the grid to heat or cool people's homes, to keep businesses running. That is an enormous reservoir of excess capacity that, I think, is very beneficial."

The Senator highlighted that Texas combines abundant and relatively low-cost energy, as well as embracing free enterprise, which makes Texas an attractive state for crypto industry development in the US. Cruz also unveiled the reason why he described himself as an enthusiastic fan of Bitcoin:

"I like Bitcoin because the government can’t control it."

The republican lawmaker admitted to purchasing Bitcoin weekly, the only cryptocurrency in his portfolio. He also noted:

"I think Bitcoin means investment. It means opportunity. It means prosperity. It means financial independence. I also think the rise of bitcoin mining in Texas has an enormous positive benefit for resiliency of the grid."

Texas is one of the fastest growing crypto mining hubs in the United States. In August, its Comptroller's office revealed the state's pro-crypto stance, intending to host long-term miners and operators in a newsletter.

Clarifying the general misconception about Bitcoin’s energy usage, the fiscal note highlighted that unlike “manufacturing facilities or industrial chemical plants, which can be expected to be around for decades,” cryptocurrency mining facilities do not place big electrical demands on the grid.

 

 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.